Behind the OPEC standoff: Saudi Arabia, the UAE and the rush to decarbonise in the Middle East
CITY A.M.
The breakdown of talks between the OPEC+ group of oil producers last week came down to disagreements between Saudi Arabia and the UAE. The two often time allies have found themselves on opposite sides of the fence over production levels of oil, a running source source of tension that has come to the fore more visibly than many expected.
Over recent years, the Saudis and Emiratis have been seen to work in lockstep with each other, whether it was their military intervention in Yemen, opposition to the Iran nuclear deal or the recent dispute with Qatar. However, OPEC’s meetings over the past year have told a different story and shown the usual partners to be working from very different playbooks.
Like other countries in the Gulf, both Saudi Arabia and the UAE are aware that their economic influence as oil producers has to change, especially as countries around the world respond to climate change and the need to de-carbonise their economies. The expected decline for oil means that oil producers will need to diversify their economies to future-proof their economies.
